India’s Reliance Industries Ltd. has stepped up crude oil purchases from the Middle East and the United States following fresh US sanctions on Russian energy giants Rosneft PJSC and Lukoil PJSC, raising concerns about potential disruptions to global oil flows.
According to traders familiar with the matter, Reliance has bought several grades of crude — including Saudi Arabia’s Khafji, Iraq’s Basrah Medium, and Qatar’s Al-Shaheen — along with US West Texas Intermediate (WTI). The shipments are expected to arrive between December and January.
The move comes after Washington imposed penalties on two key Russian oil producers in an effort to pressure Moscow toward renewed negotiations over the war in Ukraine. Reliance, which has been India’s largest buyer of Russian oil this year under a long-term contract with Rosneft, has shifted to more active spot purchases from alternative suppliers in recent weeks, traders said.
In total, the company has secured at least 10 million barrels from the spot market this month, with Middle Eastern grades accounting for the bulk of the volumes, most of which were bought after the US sanctions took effect. Reliance declined to comment on the purchases.
Other Indian refiners are also increasing their search for spot cargoes, particularly from the Middle East, the US, and Brazil. The heightened buying has pushed prices for grades such as Oman higher, while prompt timespreads for the regional benchmark Dubai have widened. Meanwhile, global benchmark Brent crude climbed more than 5% on Thursday.
Industry analysts expect Russian oil flows to India to decline sharply following the sanctions, except for supplies to Rosneft-backed Nayara Energy Ltd. Some Chinese refiners have also paused Russian oil imports as they evaluate the impact of the US measures.
